William Chu
President and CEO
United Pacific Bank
Residence:
Downey
Born:
Hong Kong
Education:
B.A., economics, University of Winnipeg; M.B.A., University of Southern California
Start in Banking:
“I was working for Deloitte as an accountant in Canada when my in-laws helped get me a job with a bank in Little Rock, Ark. I was only in Little Rock for 18 months, but I learned everything about U.S. banking in a short time.”
Previous Jobs:
Transferred to Los Angeles in 1987, where he became chief financial officer at the Bank of Trade, the first Chinese-American bank in L.A. to directly compete with Cathay Bank. In 1990, Chu moved to United Pacific Bank and left there in 1994 to build up the commercial lending division for East West Bank. In 2000, Chu was brought in to help save the Los Angeles Community Bank.
Target Market:
Since it was chartered by local Chinatown businessmen in 1982, United Pacific Bank’s core market has been small- and middle-market L.A.-based Chinese companies involved with Pacific Rim trade.
Expansion Plans:
“We don’t have the branch network right now to support retail customers. When the right acquisition target comes up, we’ll grab that opportunity.”
Philosophy:
“Banking is a long-term industry, and it is never wise to be overly aggressive at the cost of stability.” He calls the financial advisory side of banking helping small business owners grow the most gratifying part. “If they become successful, we become successful.”
Importance of Ethnic Banking:
“L.A.’s Chinese community is one of the biggest trading partners in the Pacific Rim, and these small, community banks have played a vital role in facilitating a culture that is, by nature, entrepreneurial.”
Challenges:
“The entire industry has become more regulated since 9/11, driving up compliance costs and making it difficult for small banks to survive. Compared to 20 years ago, competition in the Asian community is downright fierce with more than 30 Chinese-American banks operating in L.A. Banking today is more of a commodity.”
Jung C. “J.C.” Chang
President and Chief Executive
Pacific City Bank
Residence:
Los Angeles
Born:
Seoul, South Korea; 1940
Education:
Seoul National University Law School
Start in Banking:
At the time he finished university, many law graduates went into the banking industry. “In banking, I had many chances to meet customers and make some deals and do business.”
Previous Jobs:
Joined Hanmi Bank in Seoul in 1967 and served in various capacities, including a stint in Los Angeles. In 1985, he entered Hanmi’s L.A. operation working as a branch manager and in other capacities. He left in 2001 to start Pacific City Bank with other directors and high-level executives. The bank opened in 2003.
Target Market:
About 70 percent of customers are Korean community members, with the rest coming from other ethnic groups, primarily Chinese and Vietnamese. “We are going to expand our business boundaries to other ethnic groups and the mainstream through M & A; of some small banks.”
Expansion Plans:
Expects to open a branch in the Fashion District in November, and in Cerritos, Artesia, Koreatown and Torrance in the first quarter.
Philosophy:
“Work hard. And be honest. With harsh competition, hard work is almost the most important factor if you want to succeed.”
Important of Ethnic Banking: “Especially new immigrants, they don’t have any way to get necessary money to start their own businesses or other necessities. We know how they think and manage so we know our customers in the community and provide for their banking needs in ways most major banks cannot offer.”
Challenges:
“Many new banks are starting their businesses every year. That means more competition and that requires us to squeeze profit margins.”
Soo Bong Min
President and Chief Executive
Wilshire Bancorp Inc.
Residence:
La Canada Flintridge
Born:
Hwanghae province, Korea; 1938
Education:
B.A., economics, Seoul University
Start in Banking:
Joined Seoul-based Commercial Bank of Korea in 1959 out of college. After working his way up the ladder to become the equivalent of chief operating officer, he was appointed president of the bank’s securities subsidiary.
Previous Jobs:
After a 34-year banking career in South Korea, Min was recruited by Los Angeles-based Hanmi Bank to become its president in 1994. He moved to Wilshire State Bank in 1999 to become its president and chief executive. He retained those titles, and was appointed a director of Wilshire Bancorp upon its formation in December 2003.
Target Market:
While it’s a commercial bank strongly affiliated with Los Angeles’ Korean-American community, Wilshire State always has had a multi-ethnic, small business focus with customers in Jewish and Hispanic communities. “The majority of the bank’s initial capital in 1980 came from Jewish businessmen, who continue to be represented on the board.”
Expansion Plans:
The majority of branches are in California but the bank still sees potential for growth in the region. “We look for opportunities in underserved multi-ethnic communities that have a large enough Korean population to serve as a base.” New York, where Wilshire acquired Liberty Bank of New York, has the second largest Korean population in the United States after Los Angeles.
Philosophy:
“Though we are publicly traded and have a nationwide branch network, we have never lost our spirit as a community bank. We have a conservative business philosophy that serves our core niche market of first-generation Korean Americans.”
Importance of Ethnic Banking:
“We believe banking is a personal business. The personal touch cannot be done without cultural understanding and we have always had an ethnically mixed management and board.”
Challenges:
How to serve the second generation of Korean Americans. “It is not a big concern yet because of the many Koreans still coming over from mainland Korea and the cash flow they bring. But in five or 10 years, all the ethnic banks serving Korean Americans will have to be concerned about attracting and keeping the second generation.
Paul Lo
Chairman, Far East National Bank
CEO and Founder, SinoPac Holdings
Residence:
Taipei, Taiwan
Born:
Kun-Ming, China
Education:
Bachelor’s in International Trade & Finance, National University of Taiwan; M.B.A., Indiana State University
Start in Banking:
Lo’s father was a central banker in China, and the inspiration for his banking career. In 1970, Lo joined Citibank as one of the firm’s first Asian-born executive trainees in New York City, despite a lack of English proficiency and a U.S. banking culture far different from his home country’s.
Previous Jobs:
Worked for 10 years in Taiwan, building Citibank’s operations from 70 to 800 employees and Taiwanese assets from $1 million to more than $100 million. Left to form a boutique investment firm focusing on Hong Kong real estate. In 1990, he returned to Taiwan and raised $400 million to create Bank SinoPac, which merged with Far East National Bank in 1997.
Target Market:
Far East was the first federally chartered Asian American bank in the U.S. Opened in 1974, it caters to commercial deposit clients and construction lending in L.A.’s Chinese community and now has Northern California branches as well as a branch in Ho Chi Minh City, Vietnam. Sixty percent of Far East’s commercial loans are to domestic U.S. customers, the remainder to Asian-based businesses.
Expansion Plans:
Opening branches in New York City
Philosophy:
Lo subscribes to a “knowledge base economy” approach to banking of four major pillars: globalization, information technology, innovation, and human capital. “Sino means Chinese, Pac means Pacific,” he noted. “My strategy has been to use options like M & A; to create a banking bridge across the Pacific Rim, from Los Angeles to Beijing and back again.”
Importance of Ethnic Banking:
“We view the importance of Asian banking within Los Angeles as part of a much larger financial highway: helping Asian business owners coming into L.A. and LA companies wanting to create a presence in Asia.
Challenges:
Because Lo has spread his banking operations across six different nations, he cites changing regulatory environments and employee culture as his biggest challenge. “My vice-chairman and president (at Far East National Bank) are both non-Chinese Americans. I learned from Citibank that you have to use local people and promote from within if you want to broaden your local business.”
Neena Bansil
President and Chief Executive
State Bank of India, California subsidiary
Residence:
Park La Brea, Los Angeles
Born:
Delhi, India; 1956
Education:
Physics degree, University of Delhi
Start in Banking:
First job out of college was with the State Bank of India.
Previous Jobs:
Deputy General Manager of Industry Finance Branch in Baroda. Came to Los Angeles in 2004 to help turn around the bank’s California unit.
Target Market:
“Until a couple of years ago, we had an almost entirely Indian client bank. We have more people coming in especially on the loan front from other ethnicities now. We are getting more non-Indian money transfers.”
Expansion Plans:
Hopes to open a branch in the next six or seven months, after a recently opened San Diego branch becomes profitable.
Philosophy: “We give customers the customized product that they need and look for. Oftentimes big banks can’t customize because they are very automated. We are community based, and can introduce new products that cater to our clients, particularly our business clients.”
Importance of Ethnic Banking:
“We have a large number of people who have come from India and settled here (in California). India is a country with people who have very strong ties with their people and their land. They continue to have that bonding, either financial or emotional, even after they have lived here for a time. We have roots here and strong roots in India so we can provide the necessary inter-linkage between the two.”
Challenges:
“No small ethnic bank can have the same kind of influence that large banks like Citibank and Wells Fargo have. We don’t have the client base or access to employees. It is hard for a bank of our size to attract employees. We don’t offer the same kind of growth initiatives that another bank would offer. Additionally, we ultimately come from a different country. We have to prove to them that we are OK.”
John Hou
Chairman and President
Asian Pacific National Bank
Residence:
San Gabriel
Born:
Kaohsiung, Taiwan; 1953
Education:
B.S. physics, Fu Jen University, 1975; master’s in management science, Stanford University, 1979; master’s in public policy, Harvard University’s Kennedy School of Government, 1981
Start in Banking:
At Harvard he studied economics and monetary policy but also was drawn to public service. He viewed a banker’s role as a “semi-public servant” position. So after school he moved to Los Angeles and landed a job as regional manager for the Monterey Park branch of Los Angeles National Bank. Hou founded Asian Pacific Bank in 1990. He was inspired to do so by the demographic trends in the San Gabriel Valley.
Previous Jobs:
Regional manager for Los Angeles National Bank in Monterey Park; vice president for American Asian Bank where he helped open the Alhambra branch; and vice president for Cathay Bank, where he oversaw the Monterey Park branch. In 1993, he became the first Asian elected to the San Gabriel Planning Commission.
Target Market:
The bank provides small business and commercial real estate loans. Asian Pacific has provided loans for people trying to start warehouses, repair shops, and retail stores in the San Gabriel Valley. Initially, the bank’s key demographic was immigrants from Taiwan and Hong Kong. Today’s clientele has diversified and the bank serves more immigrants from elsewhere in China. The bank has met this change by hiring tellers who speak regional dialects.
Expansion Plans:
The bank is headquartered in San Gabriel and has a branch in Rowland Heights. Hou would like to open another branch but plans to keep business within the San Gabriel Valley.
Philosophy:
“As a community bank, it is important to truly be involved with the community. And it’s important that I feel the satisfaction of being involved. This is the best way I can help people in our neighborhood. I know the community and I know the people. People can get in touch with me.”
Importance of Ethnic Banking:
“I think in San Gabriel (Valley) you can see the trend. In Monterey Park, the Asian population is more than two-thirds; in Alhambra I think it’s over 50 percent. It’s a growing trend, and we are servicing their needs. Also, as a community bank it’s important that we set an example and show others how be good citizens and participating members of the community.”
Challenges:
“Competition. There is a growing number of ethnic banks and they are chasing the same customers. The competition is very high.”
Maria Contreras-Sweet
Founding Chairwoman
Promerica Bank
Residence:
Rowland Heights
Born:
Guadalajara, Mexico
Education:
B.A., political science, California State University Los Angeles; Certificate in Communication from University of Southern California
Start in Banking:
As California Secretary of Business, Transportation and Housing, oversaw Department of Financial Institutions. With that experience in hand, after leaving office in 2003, she launched private equity fund known as Fortius Holdings LLC. Set out to launch the first Latino bank based in Southern California in 35 years.
Previous Jobs:
Began career as aide to state Sen. Joseph Montoya. Took post as vice president for marketing and government affairs at Westinghouse Electric Co. Became equity partner of the 7-Up/RC Bottling Co. Became first Latina to serve on board of Blue Cross of California. In 1999, appointed Secretary of Business, Transportation and Housing. Formed Fortius when Gov. Gray Davis was forced from office in October 2003.
Target Market:
Small-to-midsize business market. Will be open to all businesses regardless of ethnicity, but “with special expertise” in the Latino business sector. Bank founders raised over $27 million in startup capital, mostly from Latino families with businesses.
Expansion Plans:
Bank set to open its doors at a headquarters location at Ninth and Figueroa streets in downtown Los Angeles in the next few weeks, with another branch office in the Los Angeles area to open soon after that.
Philosophy:
“Small businesses are centered on families. Promerica’s model is to work with families and their businesses, not only to lend money but also to give entrepreneurial and business guidance.”
Importance of Ethnic Banking:
“While the large mainstream banks are doing a nice job, Latinos are more comfortable with a small Latino bank, with a bilingual staff and a board that comes from the community. They want to feel like they are talking to family.”
Challenges:
Contreras-Sweet believes an ethnic bank like Promerica should be minority-owned. But in a community that hadn’t had its own bank in 35 years, not many Latino families had experience investing in a bank. Also, Contreras-Sweet said finding qualified personnel to run the bank has been challenging
Julia Gouw
Chief Financial Officer
East West Bancorp Inc.
Residence:
Pasadena
Born:
Surabaya, Indonesia; 1959
Education:
B.S. accounting, University of Illinois, Champaign. Active on several UCLA and civic philanthropic boards: was founding chairperson of the Executive Women’s Advisory Board for the Iris Cantor-UCLA Women’s Health Center and established an endowed chair for mood disorders research at the David Geffen School of Medicine at UCLA.
Start in Banking:
While at KPMG Peat Marwick audited the books of many businesses, including East West. Was impressed by the company and applied when they had an opening for comptroller in 1989.
Previous Jobs:
After college in 1981, was hired at Los Angeles office of Texaco Inc. Was senior audit manager at the Los Angeles office of the international accounting firm KMBG from 1983 to 1989. Became chief financial officer at East West in 1994. Has been named among 25 most powerful women in banking by US Banker magazine in 2003, 2005 and 2006.
Target Market:
East West’s consumer banking operations still primarily serve Chinese-Americans, but an increasing percentage of commercial operations now serve mainstream companies seeking to do business in Asia. The bank also solicits business from Asian companies wanting to expand into the U.S.
Expansion Plans:
California offers the most opportunities for growth without leaving the state. East West plans to open commercial banking centers in Ontario and Fremont next year, but fewer retail branches because of their expense. The bank is expanding foreign trade business by offering non-Chinese businesses advisory and loan services on the Chinese market.
Philosophy:
“Banks make money from managing risk especially credit risk, interest rate risk and operational risk so you must have a very strong risk management in place to be successful in the long run. Sometimes it’s easy to try to make money in the short run, but it can dilute your earnings and overly increase your risk in the long run. As a public company it is even more important that you don’t have volatile earnings.”
Importance of Ethnic Banking:
“People want to do business with people who understand their culture and their way of doing business.”
Challenges:
Expects growth from Chinese emigration to continue for at least the next 10 years, but the bank also wants to expand into the mainstream though foreign trade business. “Had we just stayed as a pure ethnic bank, eventually the market was not going to be big enough.”
William Lu
Chief Executive
Golden Coast Bank
Residence:
Fullerton
Born:
Vietnam, raised in Cambodia
Education:
Bachelor’s in business administration and international marketing, California State University, Los Angeles
Start in Banking:
Recruited directly out of school by Security Pacific Bank, where he received management training
Previous Jobs:
Lu has 34 years of banking experience. Most recently, he served as senior vice president at Bank of the Orient. Other jobs were at Wells Fargo, Security Pacific and First National Bank of Boston.
Target Market:
“There is a large Cambodian population in the Long Beach area, but we are targeting the community as a whole, many of the internationals and minorities: Hispanic, African Americans, Koreans. Most of the community banks are merging or getting pretty big so there is not really a community bank in the Long Beach area.”
Expansion Plans:
The bank is targeting a December opening date, depending on how fast it raises its remaining needed capital. “I can’t really say anything about what we are going to do down the line in terms of opening new branches. We will focus on serving our community first, and of course at some future point we will want to expand.”
Philosophy:
“Banking is very service-oriented now and we intend to be very service oriented and to understand the different ethnicities of the community we serve. We will adhere to industry standards but we aren’t as stringent as some of the major banks.”
Importance of Ethnic Banking:
“Larger banks aren’t interested in small business anymore. The same paperwork is necessary for a $50,000 as a $100,000 loan. We have an obligation to serve the individual customer and the community as a whole. We take care of the niche that the bigger banks are not interested in. Challenges: Understanding the culture. “I am not Hispanic, but there are a lot of Hispanic people in the area the bank serves. Though I am educated in French and Spanish, understanding the culture and the way they do business is a challenge.”
Profiles by staff reporters Deborah Crowe, Sarah Filus, Howard Fine, Leslie Jones and Emily Bryson York; and contributing reporters David Geffner and Margot Carmichael Lester.
